Sharpie "It is to the advantage of all the suitors to have the share price of Detour Lake as low as possible so that when a bidding war erupts the premium that ultimately will have to be paid will be a lot lower than if we were still trading at $25."
So you are theorizing that competitive forces, corporate survival in a way, are put a side for the greater good? Do you believe they can hold hands long enough to do that? I just don't. Greed and survival are more important.
"If I am a major interested in Detour I will make the bid when I am ready (based on a number of factors including my own share price)."
Well lets say I'm your competitor. I know you are being penny wise and pound foolish. I am going to put one over you and bid. By doing so, not only will I increase my balance sheet, but I my income statement will improve at the expense of yours over time. I now have a cheaper and larger resource base than you. You don't have the time you think you do because you could lose this deal to me at any moment.
" Major wouldn't fell threatened that somebody else might make an initial offer first at these low prices."
I don't agree with that at all. Those that may have been working to raise cash or who capital position is challenged would want to move quick. This corporate darwinism at it's finest. At this stage of the game, majors have reached peak production and they need more now.
"An initial bid doesn't preclude another forthcoming bid from someone else. "
This I agree with but I'm not sure why an initial bid given the reasons I outline has not occurred.
Having said that I would agree that today's action does seem more like some forced selling from a distressed seller than a major trying to position themselves.
I agree there. Someone has wanted out big time over the last 3 days of both DGC and PLG. I don't think it has anything to do with DGC